QuantumSi(US:QSI)2023-05-12 01:35Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $254,000, marking the first revenue recognized from the sale of Platinum instruments and kits, slightly above internal plans [25][35] - Gross profit for Q1 2023 was $124,000, resulting in a gross margin of 48.8%, driven primarily by the Platinum instrument product mix [35][36] - Operating expenses increased to $29.3 million in Q1 2023 from $27.1 million in Q1 2022, mainly due to higher selling, general, and administrative expenses [36] - Net loss for Q1 2023 was $23.6 million, an improvement from a net loss of $35.2 million in Q1 2022 [37] - Adjusted EBITDA for Q1 2023 was a loss of $23.7 million, compared to a loss of $27.4 million in Q1 2022 [37] - As of March 31, 2023, the company had $322.1 million in cash and cash equivalents and investments in marketable securities [37] Business Line Data and Key Metrics Changes - Customer orders in Q1 2023 totaled $449,000, slightly above internal plans, with a delay in shipping two international orders affecting revenue recognition [25][36] - The sales funnel is developing positively, with a mix of academic research centers, biotech, pharma, industrial, and government customers showing interest [5][46] Market Data and Key Metrics Changes - The advanced sales funnel consists of approximately 60% U.S. customers and 40% European customers, indicating strong interest from European markets [4] - The company is seeing significant interest in proteoform and post-translational modification (PTM) analysis, protein identification, and antibody validation [5][6] Company Strategy and Development Direction - The company aims to commercialize its Platinum, Carbon, and 2M chip products, with a controlled rollout to ensure customer satisfaction [24][34] - Plans to enhance outbound marketing and direct sales efforts to support revenue growth in the second half of the year [9][38] - The company is focused on innovation in protein sequencing and has established strategic partnerships with key opinion leaders [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong customer interest and the potential for revenue acceleration in the second half of 2023 [38][42] - The company expects Q2 orders to be similar to Q1, with gross margins anticipated to remain consistent with Q1 levels [15][43] - Management is committed to maintaining fiscal discipline while investing in commercial team expansion and marketing programs [16][36] Other Important Information - A new Chief Financial Officer, Jeff Keyes, will join the company on May 15, 2023, bringing extensive experience in public company management [17] - The Carbon sample prep instrument is on track for beta testing in Q2 2023, with a launch expected in the second half of the year [11] Q&A Session Summary Question: Who are the early buyers of the Platinum system and what are the initial applications? - Early customers are primarily from academic research centers, with interest also growing in pharma, biotech, and industrial applications [46][47] Question: What is the expected revenue guidance for the second half of the year? - The company expects revenue to accelerate in the second half based on business funnel visibility and increased marketing efforts [42][43] Question: How is the pricing strategy for the Platinum system evolving? - The company is monitoring pricing but has not seen significant pressure, maintaining most transactions at or near list pricing [63] Question: What are the early customer experiences with the Platinum system? - Early customer feedback has been positive, with no significant variation in performance compared to internal testing [66][67] Question: How will the Carbon instrument impact the workflow and attach rate? - The Carbon instrument is expected to enhance automation and efficiency, with further data from beta testing to inform its impact on attach rates [69]